With the upcoming global recession, Dubai real estate is appearing as a safe haven for investors. Recent property transactions in Dubai real estate have set a new record, read this blog to know more in detail.
While rising interest rates in different parts of the world have slowed down the property market but Dubai’s real estate is booming even with an increase to 4.5% interest rates in September 2022.
According to many reports & data, in the last 12 months, Dubai real estate has seen a price up of 89%. But if you talk about particular communities in Dubai like Emirates Hills, Palm Jumeirah, and Jumeirah Bay this figure has surpassed the 100%, thanks to the many millionaires and billionaires who are eager to secure property across Dubai’s new hotel developments.
For instance, in July 2022 a villa in Palm Jumeirah was sold for a record $82 million. According to a reputed weekly business magazine in Dubai, “in only two days of September 2022, the city’s real estate has registered a total 386 transactions worth $325 Million (Approx AED 1193 Million). Out of these 386, 341 transactions are apartments & villas in luxury communities in different parts of the city.
This record transaction comes on the heels of a hot 2021 for the city when Dubai real estate registered $35 billion in property transactions, the best year after the recession of 2008.
If we talk about the prime residential values of Dubai, then they continue to strengthen and grow by 29% only in the 3rd quarter of 2022. Thanks to the constant deluge of UHNWI ultra-high-net-worth individuals who are zeroing in on Dubai’s leading communities in search of homes or real estate investments.
Many of the property buyers in Dubai come from nations like France, Switzerland and Germany. But a big number of wealthy Russians have been flocking to Dubai to park their assets because many western countries have imposed different types of restrictions on Russia as a countereffect of the invasion of Ukraine and UAE hasn’t imposed such restrictions. So Dubai is a safe haven for wealthy Russians at this time. Even Dubai was always the most preferred destination for the Russians but now is the only safe haven to prevent the seizure of assets.
But according to many Dubai real estate investment experts, this bubble with burst soon. Dubai residential properties' value was forecast to decrease by 6.5% in 2022 and 3% in 2023. But on the other hand, many claims that the market doesn’t show any signs of slowing down in near future.
Dubai Real Estate is booming even with the non-favourable market conditions. Investors from different parts of the world flock to Dubai to grab this opportunity. Recession & Boom are paddles of the economic cycle that comes one after another. So, if you are planning to invest in Dubai then this is the best time to park your assets then wait and watch.
